# In the matter of Spencer Distilleries & Breweries Pvt. Ltd.

> NCLT judgment dated 2023-11-21. Citation: TCN-2023-NCLT-00666. The case involves a petition filed under Section 7 of the Insolvency & Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 21 Nov 2023
- **Citation:** TCN-2023-NCLT-00666
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/spencer-distilleries-breweries-pvt-ltd-a2febf54

## Summary

### Background

The case involves a petition filed under Section 7 of the Insolvency & Bankruptcy Code, 2016, by S.R.C. Realtors Pvt. Ltd., Amar Nath Tekriwal, and Nevaan Agarbatti Pvt. Ltd. against Spencer Distilleries & Breweries Pvt. Ltd., seeking initiation of the Corporate Insolvency Resolution Process (CIRP). The financial creditors claimed that the corporate debtor had approached them for loans in the form of investments due to its distressed financial condition, proposing to allot equity shares in return. The corporate debtor acknowledged the investments in its balance sheets but later failed to allot the shares or repay the amounts borrowed. The financial creditors then issued letters requesting the corporate debtor to honor the terms, but no action was taken.

## Facts

S.R.C. Realtors Pvt. Ltd., Amar Nath Tekriwal, and Nevaan Agarbatti Pvt. Ltd. (the Financial Creditors) jointly filed a petition under Section 7 of the Insolvency & Bankruptcy Code, 2016, against Spencer Distilleries & Breweries Pvt. Ltd. (the Corporate Debtor). The Financial Creditors claimed to have extended loans to the Corporate Debtor in the form of investments, with a proposal to allot equity shares in return. S.R.C. Realtors Pvt. Ltd. transferred Rs. 50,00,000 on 2017-08-23, Amar Nath Tekriwal transferred Rs. 1,00,00,000 on 2017-04-24, and Nevaan Agarbatti Pvt. Ltd. transferred Rs. 20,00,000 on 2018-02-19. The Corporate Debtor acknowledged these investments in its balance sheets for the years ending 2018-03-31, 2019-03-31, and 2020-03-31. However, the

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## Issues and analysis

### Issue 1: Whether the petition filed by the Financial Creditors under Section 7 of the Insolvency & …

**Ratio:** To admit a petition under Section 7 of the I&B Code, the Adjudicating Authority must

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**Reasoning:** The Adjudicating Authority analyzed the submissions and financial statements of both

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**Interpretation:** Section 7 of the I&B Code allows a financial creditor to initiate CIRP

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**Application:** In this case, the Adjudicating Authority found that the Financial Creditors

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## Parties

- **Judges:** BIDISHA BA…; ARVIND DEVA…
- **Appellants:** S.R.C. REALTORS…
- **Respondents:** SPENCER DISTILLERI…

## Timeline

- **2017-04-24 — Investment by Amar Nath…**: Amar Nath Tekriwal transferred Rs.…
- **2017-08-23 — Investment by S.R.C.…**: S.R.C. Realtors Pvt. Ltd. transferred Rs.…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(8) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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